McConnell Dowell 2018 Annual Review

Good growth prospects in the commercial and residential sector are expected as business confidence remains positive in the Australia and New Zealand region. McConnell Dowell’s commercial building arm, Built Environs continues to advance its turnaround plan. Revenue increased by 92% to AUD90 million (2017: AUD47 million) which reflects the termination of the U2 on Waymouth contract. Built Environs is restoring operational excellence and broadening its market presence and activity in line with the growth plan. Construction on The West Franklin Apartments is progressing to plan, and the Urbanest Student Accommodation project achieved practical completion in January 2018 making this the fastest construction of a 22-storey building in Adelaide. The primary strategic objective of Built Environs is to establish critical size and scale of the operations through expansion into adjacent and complementary sectors and geographies. The business is now active in a diverse range of sectors, including apartments, student accommodation, hotels, health, defence, and education. New contract awards on HMAS Stirling Base, Garden Island for the Department of Defence, Auckland City Mission HomeGround Development in New Zealand and early contractor involvement opportunities for the GSA Accommodation and 157 Waymouth Street. However, these opportunities are dependent on conversion into design and build contracts. Built Environs has made good progress in establishing its brand in New Zealand and is well placed to secure new work in the region. Active Projects West Franklin Apartments, South Australia HMAS Stirling CEPS2 & BU1, Western Australia Auckland City Mission HomeGround Project, New Zealand Built Environs Business Unit Daryl Young Managing Director, Built Environs